HB134 Alabama 2024 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Session

Regular Session 2024

Title

Appropriations from State General Fund for executive, legislative, and judicial agencies of the State, other functions of government, debt service, and capital outlay for fiscal year ending September 30, 2025.

Summary

HB134 is Alabama's FY2025 general fund and other funds appropriations act, allocating money to executive, legislative, and judicial agencies, debt service, and capital outlay for the year ending September 30, 2025.

What This Bill Does

It sets program-level budgets for a wide range of state agencies and programs, with funding sources shown for each item, and states these appropriations replace similar funding from other statutes for FY2025. It allocates ordinary expenses, debt service, and capital outlay across the state government and key programs, including transfers and potential adjustments to maximize federal matching funds. It provides for a 2% salary increase for state employees and inflationary increases, with up to $50 million from the State General Fund, prioritizing payroll across agencies. It authorizes interagency transfers and numerous grants to counties, municipalities, and nonprofit groups, along with reporting and accountability requirements to the Legislature and the Governor.

Who It Affects

• State employees and state agencies will receive a 2% salary increase and related employer contributed costs, with priority given to payroll; agencies will receive updated program budgets and allocations for FY2025.
• Local governments, nonprofit organizations, and other nongovernmental entities that receive grants or funding under the act (e.g., community resource centers, CASA networks, Boys and Girls Clubs, and various health, housing, and community programs) will be affected by grant awards and the associated reporting and accountability requirements.

Key Provisions

• Section 3: Provides comprehensive appropriations for ordinary state expenses, debt service, and capital outlay for FY2025, listed by program area and funded from the State General Fund and Other Funds; funds are intended to replace similar appropriations in other statutes for the year.
• Section 4-5: Establishes a 2% salary increase for state employees and inflationary increases (not exceeding $50,000,000 from the State General Fund), with first priority given to payroll, and directs adjustments to SEIB contributions as needed.
• Section 22: Allows interagency transfers and reallocations to maximize federal matching funds; requires reporting of interagency transfers to the Legislature and Finance Director.
• Section 23: Requires nongovernmental entities receiving funds under Section 3 to report expenditures and grant details before the start of the 2025 Regular Session; the Legislative Services Agency will provide oversight and methodology for reporting.
• Section 17-18: Contains encumbrance lapse rules (encumbered balances lapse if not spent by the following fiscal year) and directs specific transfers to the State General Fund or other funds as needed to balance appropriations.
• Section 11-12: Establishes various reserve and contingency provisions, including use of the Governor’s Contingency Fund, and permits reappropriation of surplus or unspent funds to other approved purposes with legislative oversight.
• Section 35-36: Sets debt service allocations for General Obligation Bonds and related debt instruments, with criteria for future bond refunding or new issuances and potential transfers to related capital improvement funds, subject to director and governor approval.
• Section 25: Repeals conflicting laws to harmonize the act with existing statutes and the Budget Management Act, and Section 26-27 require equal opportunity provisions and effective date of October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Appropriations